Assuming 30 trading days horizon, Domino Printing Sciences PLC is expected to under-perform the Harita. But the stock apears to be less risky and, when comparing its historical volatility, Domino Printing Sciences PLC is 3.19 times less risky than Harita. The stock trades about -0.41 of its potential returns per unit of risk. The Harita Seating Systems Ltd. is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 12,600 in Harita Seating Systems Ltd. on April 25, 2012 and sell it today you would lose (400.00) from holding Harita Seating Systems Ltd. or give up 3.17% of portfolio value over 30 days.
Diversification
Very good diversification
Overlapping area represents amount of risk that can be diversified away by holding Domino Printing Sciences PLC and Harita Seating Systems Ltd. in the same portfolio (assuming nothing else is changed)